Business Model assignment on: Wal-mart
“A business model describes the rational of how the organisation delivers, captures and creates value” (Osterwalder & Pigneur, 2010). On analysing the business model that is adapted by Walmart, it can be said that it follows the model of nine blocks.
Value proposition
The value proposition of Walmart is based on every day low pricing. This strategy remains the core of the business model. All the features are aligned to this model for the purpose of the everyday low price. This is a proposition that is kept forward for customer convenience so that they don’t have to wait for the time of the sales. Walmart also acts as a one stop centre for purchasing various products. This means that there is savings in the case of money and time when Walmart is considered (Basker, 2007).
Distribution channel
the value that is proposed to the customers are delivered to them through various channels now which are owned by Walmart and are direct in nature, this helps in bringing a better margin. The corresponding to the customers now happens through mass media and also through internet
Customer segment
The concept of self service and automation is framed for maintaining customer relationship. Mass customisation is the strategy that is taken by them for appealing to the masses. the group of the customers in the customer segment can be divided into three that are brand aspirators who are obsessed with brands, price sensitise effluents who looks for a deal when they shop and value price shoppers who can afford things at low prices (Barbara, 2007).
Key Activities
The key activities in Walmart include purchasing of the goods, the delivery of goods and also control of the total costs. The technological edge of the Walmart is highly applied in these activities to establish harmony among all.
Key resources
The key resources in the case of Walmart can be divided into three that are the physical resources human resources and company culture. These resources work hard to cater to the various demands of the customers
Key Partnership
One of the key ingredients that have worked in the case of Walmart is the successful relationship the Walmart have had with its suppliers. They are close partners to Walmart and Walmart offers them with an opportunity to expose them to a larger market and suppliers are ready to give theory name for Walmart.
Revenue Stream
the there is a fixed menu pricing in the case of Walmart and revenue strums come in from retail sales. They also sell its brand and also brands that are produced by themselves and others. One of the major advantages is that Walmart sells the goods and then pays the retailer.
Cost Structure
Walmart also have a cost driven model. Walmart have expanded to give benefits to the customers from economies of sales, this strengthens themselves, the customers and the suppliers. The financial discipline of Walmart is also known well as the operating costs are to be taken by the suppliers (Basker, 2007).
In short it can be said the cost leadership is the strategy that is delivered by Walmart. The business model that is adapted by Walmart is an adept platform and lets company be committed to experimentation and making the supplier their partners. This model is what made Walmart a role model as a retailer.
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